Gevo, Inc. and Future Energy Global (FEG) have announced a major agreement aimed at helping airlines and corporations reduce their carbon emissions through Sustainable Aviation Fuel (SAF). The multi-year offtake agreement will see FEG purchase emissions reduction credits linked to 10 million gallons of SAF per year from Gevo’s upcoming production facility, ATJ-60, according to the press release.
Under the agreement, FEG will acquire both Scope 1 and Scope 3 carbon abatement credits, which airlines and companies can use to offset their direct and indirect emissions. The deal also includes the option for FEG to increase its annual purchase in the future.
This partnership is expected to support the financing of Gevo’s ATJ-60 facility, which is being developed in Lake Preston, South Dakota. The plant is backed by a conditional loan guarantee of $1.63 billion from the U.S. Department of Energy’s Loan Programs Office and aims to produce 60 million gallons of SAF annually. The goal is to deliver jet fuel at prices comparable to conventional fuel, but with significantly lower carbon emissions.
With the aviation sector aiming to reach net-zero carbon emissions by 2050, SAF is projected to play a major role, contributing to around two-thirds of the required reduction. However, widespread access remains limited, and production needs to scale dramatically—more than 400 times current levels.
To address these gaps, FEG uses a system called “Book and Claim,” which allows the environmental benefits of SAF to be traded separately from the physical fuel. This system provides airlines and companies with the ability to offset emissions even when SAF is not available at their specific locations. It also makes SAF more financially viable by separating the environmental attributes from logistical challenges.
Dr. Patrick R. Gruber, CEO of Gevo, emphasized the importance of this approach: “A Book and Claim market that enables the trading of SAF environmental attributes can accelerate SAF production even faster. Future Energy Global is building just such a market.”
Natasha Mann, CEO and Co-Founder of FEG, said the agreement strengthens FEG’s ability to offer flexible solutions to customers across aviation and other industries. “We’re impressed with Gevo’s technology and pipeline, which support today’s market needs and also promise more efficient SAF production in the near future,” she said.
FEG’s model brings together suppliers, buyers, and investors to help scale SAF production globally. By selling the carbon credits generated through SAF use, FEG creates additional revenue that can be reinvested into expanding production. While its current focus is aviation, the company also plans to support sustainable fuel solutions in marine and land transport sectors.
The collaboration between Gevo and FEG is seen as a step forward in making clean fuel solutions more accessible, reliable, and financially sustainable across multiple industries.
For detailed information and further insights, please refer to BioEnergyTimes.com, which provides the latest news about the Sustainable Aviation Fuel Industry
